Saudi Arabia bans insurance and re-insurance activities within the same firm

A Saudi broker monitors the stock market in the Saudi capital Riyadh. (File photo: AFP)

 The Saudi Arabian Monetary Agency (SAMA) has prohibited combining insurance and reinsurance brokerage activities in the same company, effective immediately, it said in a statement on Thursday.

The agency said it had taken the decision to increase the stability of the insurance sector, boost its contribution to national economic growth and reduce “wrong practices” in the industry.

Companies that currently combine both activities have one year to implement the decision, and must give SAMA their plans to change within three months.

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Last Update: Wednesday, 20 May 2020 KSA 10:05 - GMT 07:05
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